Astros denied claim on Bagwell's shoulder

By Jose de Jesus Ortiz |
March 27, 2006

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KISSIMMEE, Fla. — The Astros have been told they cannot collect on the insurance policy they hold on disabled first baseman Jeff Bagwell's $17 million salary for this year, an attorney for Connecticut General Life Insurance has confirmed.

"On March 13, 2006, Connecticut General Life Insurance Company notified the Houston Astros that it had denied a total disability claim submitted by the Astros relating to Jeff Bagwell," said attorney Ty Buthod, a partner at the Houston law firm of Baker Botts. "The company determined that there had been no adverse change in Mr. Bagwell's condition or ability to play baseball between the end of last season, when he was an active member of the roster, and January 31, 2006, the date the policy expired. The company carefully reviewed the claim as submitted by the Astros and determined that the claim did not support a finding of total disability."

In January, the Astros deemed Bagwell a disabled player and filed the insurance claim to recoup $15.6 million of the $17 million he'll earn this year in the final season of his contract. For the purpose of that claim, the Astros consulted with famed orthopedist Dr. James Andrews, who examined Bagwell in January, and Astros physician Dr. David Lintner.

Bagwell disagreed with the Astros' assessment and arrived in camp last month. On Saturday, he finally ended his quest to stay off the disabled list, admitting it might take "a miracle" for him to play again.

Astros owner Drayton McLane understood that Bagwell's attempt to play this spring could hinder his insurance claim, and he admitted Saturday that his claim could end in litigation. Nonetheless, McLane defends the strength of his claim.

"I knew we had some risks (by letting Bagwell come to spring training)," McLane said. "I feel we stand a great opportunity to win this. We still were well within our rights in the contract we entered with Connecticut General."

Connecticut General understands the possibility of landing in court, which is why it secured the services of Baker Botts in February, a week after the claim was filed by the Astros.

"The policy terminated on January 31, 2006," Buthod said. "The Astros took the position that Mr. Bagwell had become totally disabled sometime between the end of the 2005 season and January 31, 2006. Throughout the process, Mr. Bagwell and the Astros were cooperative, gracious and professional. Connecticut General wishes the club and Mr. Bagwell the best."

Bagwell, who acknowledged Saturday that his shoulder had not made the progress he desired, was placed on the 15-day disabled list with arthritis and bone spurs in his right shoulder.

Bagwell had played through right shoulder problems since 2001, but he finally conceded he needed to go on the disabled list last May. He missed a career-high 115 games last year before coming off the DL on Sept. 9. He was added to the postseason roster and even started as the designated hitter in the first two games of the World Series against the Chicago White Sox at U.S. Cellular Field.

If McLane had kept Bagwell off the postseason roster and away from spring training, the Astros' case against the insurance company would be stronger.

"We took some real risks when we allowed Jeff to participate in the World Series," McLane said. "Even though we took some risks — and our attorneys advised us there were risks — we felt that we were well within the contract to allow him to do so.

"We felt we owed (Bagwell) the right and our fans the right to see him in the playoffs and the World Series if we got there."

As a matter of reference, the Astros' payroll stood at $14.5 million in 1992, the season before McLane took over as owner.